Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a lengthy list of home improvement projects that they need to do or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is one project that may be vital to keeping your home comfortable throughout the winter months in Cedar Rapids.

Selecting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you must purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Ilten's, the experts will help you select a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs throughout the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Ilten's a call at 319-208-2351. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.